Europe Carbon Price Rises to Seven-Week High on Ukraine Tensions

  • EU carbon permits inch closer to December’s record level
  • Fears over gas security can turn generators to dirtier fuels
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The cost of pollution in Europe hit an almost seven-week high amid concern that potential conflict in Ukraine could send the continent’s gas prices surging, making dirtier fuels cheaper to burn.

European Union emissions permits are rising toward a record reached in December, as higher gas prices drive the switch to more carbon-intensive fuels such as coal and lignite. Fears over expensive gas can push up demand for pollution permits as generators see dirtier fuels as more profitable.